Welchen Zusammenhang zwischen Preis und Qualität sollte der Wettbewerb auf Konsumgütermärkten herstellen? Empirische Befunde, normative Überlegungen, marktpolitische Schlussfolgerungen
AbstractNot only that consumers take it often for granted that product prices are good indicators of product quality, but also many experts in consumer economics expect a high positive pricequality relationship. However, for more than 50 years numerous studies in more than 10 countries all over the world have shown low price-quality correlation coefficients, mostly close to 0.2. These results have been interpreted twofold: (a) consumers cannot use prices as valid indicators of quality and (b) markets do not function well. In contrast to the second interpretation, this paper argues that, according to the economic theory of price formation, prices are not an indicator of quality, but an indicator of scarcity. This allows the conclusion that workable consumer goods markets, as seen from a welfare point of view, should be characterized by low or even negative correlations between price and objective quality rather than by strong positive coefficients. All the more it is the availability of valid information about product quality which is necessary to enable consumers to avoid inefficient product choices.
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Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 229 (2009)
Issue (Month): 4 (August)
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Price-quality relationship; market efficiency; market failure; workable competition;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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- Heiner Imkamp, 2008. "A New Look at Old Coefficients," Journal of Consumer Policy, Springer, vol. 31(2), pages 139-145, June.
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